Airbus super-jumbo in new delay

[Pieter C. 5]

The delays are now even effecting others, like engine-builder Rolls Royce :

 

October 6, 2006

Rolls-Royce said on Friday it had suspended work on the Trent 900 engine for the Airbus A380 super-jumbo for about 12 months.

 

The A380 is now not expected to start deliveries until the last quarter of 2007, two years late, as engineers work to fix problems in wiring the mammoth double-decker plane.

 

"We are suspending production for about 12 months," a Rolls-Royce spokesman said. "We made the announcement to employees yesterday."

 

He said the company did not expect immediate layoffs or any change in its financial guidance for the year.

 

"We are continuing to talk to Airbus about the exact details of their future requirements. Once we have the detailed engine program requirements from Airbus and are clear on any potential impact on Rolls-Royce, we will consult with employee representatives."

 

The Trent 900 makes up a small part of Rolls-Royce's annual turnover, which includes production and support for engines for several models of planes from Airbus, Boeing and other manufacturers.

 

In addition to aircraft engines, Rolls-Royce manufactures ship engines and equipment used in the energy industry.

 

(Reuters)

 

[Pieter C. 5]

October 9, 2006

Airbus lost its second chief executive in three months on Monday after his plan to resolve delays to the A380 superjumbo offended Germany and opened a rift with parent EADS.

 

In a statement ending days of speculation, the Franco-German aerospace group said chief executive Christian Streiff had resigned from Airbus with immediate effect and would be replaced by EADS co-chief Louis Gallois.

The resignation plunged the group into fresh turmoil 100 days after Streiff was appointed with a mandate to put Airbus back on course after the turbulence caused by delays to its flagship project to rival Boeing's 747.

 

"I hope that (my resignation) will provide a salutary shock that forces a rethink about how Airbus is governed," Streiff told France's Le Figaro newspaper.

 

Gallois used to run France's Aerospatiale, one of the groups that were folded into a merged EADS in 2000. He will retain his role at EADS, where he is co-chief executive alongside Tom Enders, EADS said in a statement.

 

"The new management structure will allow a leaner more efficient corporate governance and additional cost savings within the EADS group," it said.

 

An industry source who closely watches EADS said Streiff's position had become untenable after he exposed deep flaws in Airbus's industrial methods and raised the prospect of sensitive job cuts without adequate political cover.

 

Germany responded icily to his plans, especially to suggestions Airbus teams in Hamburg were responsible for the wiring installation faults that have pushed the A380 two years behind schedule because of obsolete design software.

 

Streiff described the Hamburg plant as "the weakest link" in the A380 production process.

 

Germany could bear the brunt of any factory reorganization since 10 out of the 16 Airbus European plants are based there.

 

"This whole affair became too political, too early," the industry source said.

 

German Finance Minister Peer Steinbrueck hinted at the tensions, telling reporters at a European Union meeting in Luxembourg it was important German factories were treated "equally".

 

An official close to French President Jacques Chirac said the French and German governments would discuss the situation at EADS at regular bilateral talks in Paris on Thursday.

 

Streiff said last week Airbus needed a radical cost-cutting plan and industrial streamlining to save EUR2 billion euros (USD$2.52 billion) a year because of internal inefficiencies and a weak dollar that benefits Boeing.

 

He took over as Airbus head at the beginning of July after earlier delays to the A380 -- then already a year late -- wiped a quarter off EADS shares and led to the resignation of Airbus chief executive Gustav Humbert and EADS co-chief Noel Forgeard.

 

In a further blow to the company, Airbus reported on Monday that it sold just 4 aircraft in September, a lower number of orders than for any month in 2006 or 2005. Boeing has overtaken Airbus in net new orders this year with 723 planes added to its backlog by October 3.

 

(Reuters)

 

October 9, 2006

New Airbus chief executive Louis Gallois' first task will be to overcome the wiring problems that have bogged down the A380, the world's largest passenger jet, and end the design problems that have dogged the wide-bodied A350 jet destined to rival Boeing's 787.

 

Gallois, who is expected to combine the post with his job as co-chief of Airbus parent EADS, replaces Christian Streiff, who lost a battle over the style of radical reforms he proposed to end chronic production bottlenecks on the A380.

 

The appointment of Gallois is the latest phase in the rise of the steely manager plucked from France's SNCF state railways in July to steady EADS as the European aerospace and defence group was buffeted by heavy turbulence.

 

And he will need his sharp sense of humor to ease tensions in the politically charged atmosphere at EADS.

 

Executive functions are traditionally equally split between French and German managers in a complex power-sharing structure that is under huge pressure as Airbus seeks to reduce costs and speed up development against its main competitor Boeing.

 

"There are no resentments, but a concrete will to work together in a more integrated way," Gallois said in July in an interview published to coincide with the Farnborough air show, vowing to work with fellow EADS chief executive Tom Enders.

 

Gallois is no stranger to the aircraft industry, being a former head of French state company Aerospatiale whose Toulouse factories designed and built Concorde and the early generations of Airbus jets.

 

A well-known leftist sympathizer, Gallois helped set up a trade union chapter when he was a student at France's elite college for administrators, ENA, and went on to work as an aide for a Socialist government minister in the 1980s.

 

He switched to business in the late 1980s, running aero engine maker Snecma between 1989 and 1992 and moving on to lead Aerospatiale between 1992 and 1996.

 

His management skills earned him the respect of politicians from all sides and he was appointed as head of French rail company SNCF in 1996 by a rightist government, staying in the job the following decade regardless of who came to power in Paris.

 

As SNCF head he sought to encourage the recruitment of women and of youths from poorer areas, and made clear he wasn't just in the job for the money.

 

"I am earning a lot in comparison to many railway workers, and I'm aware of that. But I am earning a lot less than the heads of companies of a comparable size," he said during a question and answer session on the Internet in 2005.

 

Gallois' return to EADS, which now incorporates what was Aerospatiale, and his enhanced role at Airbus marked a new rise in the authority of the state-trained old guard in France's aerospace industry.

 

Both his predecessors at EADS were among the so-called "Lagardere boys" who shot to prominence when Aerospatiale merged with the Matra missile firm of the late Jean-Luc Lagardere, before widening to become EADS in 2000.

 

Proud of their aeronautical design and technical skills, the Aerospatiale people were seen as a clan apart from the men from Matra, famed for their financial acumen and sharp salesmanship.

 

Asked in an interview which animal Gallois would most identify with, he said: "I'm proposing a camel for the SNCF: sober, enduring, comfortable... and fast. Why not the same for me!"

 

(Reuters)

 

[Tony 1]

"This whole affair became too political, too early," the industry source said.

YOU BET

[Sandeep G 1]

YOU BET

 

The Airbus model has always been on edge.. and they are unlucky to have come this far, yet now have this massive problem... It's a shame, and EU politicians will sure lose their heads, but hopefully not at the expense of Airbus.

[Pieter C. 5]

Government Influence Comes Back To Haunt Airbus - FEATURE

 

October 10, 2006

The European governments that created Airbus and funded ambitious airliner programs that allowed it to rise past US rival Boeing, are now hindering the firm's efforts to get over the worst crisis in its history.

 

The sudden departure of Airbus CEO Christian Streiff on Monday after only three months in the job has underscored just how important national considerations remain within Airbus and its parent EADS, which has operated with a cumbersome Franco-German management structure since its founding.

 

It was Streiff's attempt to break down these structures and introduce cost cuts without regard to political sensitivities, that alienated his managers within EADS and the German government, ultimately making his position untenable.

 

"The organization and governance of EADS have as major objectives the preservation of a delicate balance between men, power and positions," Streiff told French daily Le Figaro on Tuesday. "This formula can work in normal times, but it is not appropriate for a firm that is going through a serious crisis."

 

Just over two years ago, Airbus was riding a wave of success that had some experts wondering if it would dominate the global market for commercial jets for years to come.

 

In 2003, it delivered more planes to airlines than Chicago-based Boeing for the first time in three decades. Its order book, swelled by stunning demand for its A380 superjumbo, was outpacing its US rival year after year.

 

Governments in Britain, France, Germany and Spain were helping drive the company's rise, providing vital loans and becoming risk sharing partners in the A380 -- a double-decker plane that was to render Boeing's 747 obsolete.

 

Today, wiring problems have put the A380 two years behind schedule, denting EADS stock, dimming the firm's earnings outlook and compromising other key programs such as the mid-sized A350.

 

EADS has acknowledged drastic cost cuts are needed for it to pilot through the turbulence. Last week Streiff said the firm must find EUR2 billion (USD$2.5 billion) in annual savings by 2010.

 

But the governments that have poured billions of euros into the company have made it clear they will resist major job cuts and warned that any sackings must be balanced geographically.

 

"It is a Faustian contract," Nick Cunningham, an aerospace analyst at Panmure Gordon in London, said of the relationship between Airbus and the politicians.

 

"The governments provide launch aid. But when it comes time to make changes, it is all about what's politically possible rather than what makes sense from an industrial point of view."

 

Airbus planes are made from parts supplied by France, Germany, Britain and Spain, reflecting the balance of industrial power and expertise in Europe at the time Airbus was created as a consortium in 1970.

 

Analysts at Goldman Sachs believe Airbus, which has 16 sites in Europe where the vast majority of its 55,000 staff work, should look to shed four plants in Germany, two in France and one in Spain.

 

Ironically, the model for Airbus as it looks to rebound from its woes may be Boeing -- the firm it humbled in recent years.

 

Boeing has bounced back from management problems and a nasty row with the Pentagon thanks to aggressive cost cuts via outsourcing on its hot-selling 787 Dreamliner.

 

Due to enter service in 2008, up to a quarter of the plane's content will come from countries outside the United States and suppliers will build 60 percent of its structure.

 

Airbus has also vowed to boost outsourcing, which would reduce its cost base and help it counter the effects of a strong euro. But here again, resistance from governments is likely to be robust if they see other countries are poised to benefit from investments they have made in new Airbus programs.

 

"Right now Airbus plants are in high cost countries and that gives them very little flexibility," said Cunningham.

 

Just how flexible Airbus really is will be tested shortly.

 

Louis Gallois, who took Streiff's place as CEO this week, warned on Tuesday of "painful" job cuts and called EADS structure a "bit baroque". He is likely to meet strong resistance in a company that has always had more success with balanced government-funded expansion than cutbacks.

 

"Why change the entire group," said Xavier Petrachi of the French CGT union. "The Franco-German parity is an excellent thing, an engine that could easily break down if you tamper with the equilibrium."

 

(Reuters)

 

Remind me a bit of 'government mingling' at MAS; when 'politics' start intervening......................

 

[Sandeep G 1]

Government Influence Comes Back To Haunt Airbus - FEATURE

 

 

Remind me a bit of 'government mingling' at MAS; when 'politics' start intervening......................

 

You hit the hammer on the head..

 

[Pieter C. 5]

Putin was in Germany last week for 'bigger involvement in EADS', which was turned down by Merkel

 

Here some (more) related news:

 

October 13, 2006

The German government said on Friday it would consider offers from regional states to play a role in helping EADS, parent firm of troubled planemaker Airbus, recover from a crisis caused by superjumbo delays.

 

As fears mount in Berlin and Paris that an Airbus overhaul could mean heavy job cuts, the governor of Lower Saxony said Germany's 16 states could buy a stake in the European aerospace consortium.

 

"We can stand by the company, behind the military branch, too, with big public orders," Lower Saxony Premier Christian Wulff told German broadcaster ARD.

 

"Neither do we rule out that under some circumstances we are ready to take a stake. Through the federal government via the state-owned development bank KfW, through the individual states. And not just the affected states, but all of them with their public institutions," he said.

 

The idea sparked criticism from several German politicians, and analysts said such a move might prove difficult.

 

The federal government has said, however, it may buy a holding in EADS through KfW, and a government spokesman said on Friday the states' suggestions should not be ignored.

 

"The statement by the German states that they are prepared, in the interests of the production plants and employment, to get involved is something that must play a role in any considerations," spokesman Thomas Steg told reporters.

 

The leaders of France and Germany on Thursday pledged to share the burden of an Airbus restructuring after delays to its flagship A380 superjumbo project but said no decision on the company's future ownership had been made.

 

German Chancellor Angela Merkel confirmed that Berlin was considering buying a stake in EADS, and three German states -- Bavaria, Hamburg and Lower Saxony -- have said they are not ruling out taking a stake.

 

Berlin wants to protect German interests amid talk that Germany's DaimlerChrysler will reduce its 22.5 percent holding in EADS.

 

Production problems with Airbus's A380 have led to delivery delays and led to Chief Executive Christian Streiff resignation on Monday.

 

Germany also wants to stop Russia from becoming too powerful. Merkel has said it cannot be a core institutional shareholder, although Moscow has said it wants to boost its 5 percent stake.

 

Russian state bank Vneshtorgbank declined to comment on a report in Les Echos that it had raised its stake to 6 to 7 percent. Germany, Russia and EADS also declined to comment on the report.

 

DaimlerChrysler has said it would be prepared to reduce its EADS holding to 15 percent but would sell only in agreement with the German government and in cooperation with the French.

 

The French government owns 15 percent of EADS, and French media group Lagardere has a further 7.5 percent.

 

An enhanced government role is far from straightforward, say analysts, and unpopular among some of Merkel's conservatives.

 

Some analysts say the comments from local politicians may be designed mainly to show support for plants facing job cuts.

 

Otto Bernhardt, finance spokesman for Merkel's conservatives in parliament, said he favored free market rules.

 

"In principal, competition must decide, not politicians," Bernhardt told the Hannoversche Allgemeine Zeitung newspaper.

 

Any stake purchased by KfW would have to be subject to a time limit of two years, "until the crisis is over", he said.

 

Guido Westerwelle, head of the opposition liberal Free Democrats, said in the Main Post daily that Germany would not solve structural problems with state interventionism.

 

(Reuters)

 

[Mohd Idham 0]

Guys and Girls, we are discussing about the things that will happen when A380 delay..

 

What are the caused of the delay actually...???

[Pieter C. 5]

Guys and Girls, we are discussing about the things that will happen when A380 delay..

 

What are the caused of the delay actually...???

 

AFAIK: wiring problems...

[S V Choong 4]

If I am Boeing's CEO or some executives, I will be sitting on my CEO chair smokin' and laughing it off.....

 

Boeing has warned Airbus about the A380 from their experience with the 747 which almost crippled the company.

 

Seems like the day in Boeing is getting brighter day by day.

 

I can smell a delay with the A350 since Airbus had changed it to match the 787, it is more or less a new development from the A330/340 sisters. Good luck Airbus.... especially with cooking up two new planes.

Edited October 15, 2006 by S V Choong

[Jacky Goh 0]

really hope airbus can settle the problem like boeing 747.... they also hav problem last time rite... but now they success... we hav the largest passenger aircraft until now... so we wish them good luck also la

[BC Tam 2]

It is quite true the 747 programme too had its 'problems' and doubters during its gestation, birth and infancy. If I've got my facts right, the project itself resulted from failure in competition, to Lockheed, to supply what is now the C-5 Galaxy to the USAF. So, Boeing is no stranger to the downs of the industry as far as history can tell.

 

However, bear in mind there wasn't the intensity of A vs B competition then, as is nowaday. Perhaps more importantly, it's a Europe vs US competition nowadays. Granted there would have been industrial rivalry from Lockheed, McD, Convair et al in those days, but I believe nobody else was planning to develop a competing giant against the 747 then.

 

Furthermore, competition against a rival in similar stage of development is one thing, competition against a well proven successful predecessor (as what Airbus is trying to do with their A380) is another ball game.

 

SV,

If you're Boeing's CEO, suggest you get off that chair and get a few extra nails, make doubly sure the rival's coffin is securely fastened ! Smoking is bad for you in any case !!

Whilst you're at it, can you arrange for a freebie tour of Everett and some corporate give-aways

 

 

[Tony 1]

It is quite true the 747 programme too had its 'problems' and doubters during its gestation, birth and infancy. If I've got my facts right, the project itself resulted from failure in competition, to Lockheed, to supply what is now the C-5 Galaxy to the USAF. So, Boeing is no stranger to the downs of the industry as far as history can tell.

 

However, bear in mind there wasn't the intensity of A vs B competition then, as is nowaday. Perhaps more importantly, it's a Europe vs US competition nowadays. Granted there would have been industrial rivalry from Lockheed, McD, Convair et al in those days, but I believe nobody else was planning to develop a competing giant against the 747 then.

 

Furthermore, competition against a rival in similar stage of development is one thing, competition against a well proven successful predecessor (as what Airbus is trying to do with their A380) is another ball game.

 

SV,

If you're Boeing's CEO, suggest you get off that chair and get a few extra nails, make doubly sure the rival's coffin is securely fastened ! Smoking is bad for you in any case !!

Whilst you're at it, can you arrange for a freebie tour of Everett and some corporate give-aways

Good point - agreed. Especially on competition between Airbus and Boeing - it really boils down to America vs Europe these days.

 

Corporate give-aways...hmmm...SV, can I have a 748 model?

[Andrew Ong 1]

My dad knows and person who used to be a Malaysia Airlines head travel agent in Los Angeles and he may know the Malaysia Airlines CEO; so I could ask him to see how Malaysia Airlines will work through the A380 delay and have him know to tell the MAS CEO on other options like the B773ER or the 748.

 

But the problem is that it may not work, but I'll try

 

 

Edited October 16, 2006 by Andrew Ong

[Sandeep G 1]

My dad knows and person who used to be a Malaysia Airlines head travel agent in Los Angeles and he may know the Malaysia Airlines CEO; so I could ask him to see how Malaysia Airlines will work through the A380 delay and have him know to tell the MAS CEO on other options like the B773ER or the 748.

 

But the problem is that it may not work, but I'll try

 

good luck on your endeavour But hey, at the end of the day, Airbus made some mistakes in the design that they are now facing the repurcussions.. The problem (from a well-known aviation journalist) is due to the problem of "wiring" bottlenecks.. Airbus simply overlooked certain areas of the plane where wiring needs to traverse, but the locations aren't big enough..

 

With regards to the Russians... I think Airbus/ EU/EADS are foolish not to allow greater input from the russians... but I guess the terms have to be right, and perhaps the russians were more interested in taking technology back to russia... particularly in terms of avionics and the EPDS - this is the major flaw of existing russian carriers not utilising western avionics and EPDS. Structurally, I believe the russian birds are truly "IRON BIRDS" - no pun intended

[Pieter C. 5]

perhaps the russians were more interested in taking technology back to russia... particularly in terms of avionics and the EPDS - this is the major flaw of existing russian carriers not utilising western avionics and EPDS.

 

Exactly !!!

[Pieter C. 5]

October 19, 2006

Australia's Qantas Airways said it would not cancel its order for Airbus's new A380 superjumbo, despite a two-year delay in receiving its first planes from the order.

 

"We are working with Airbus to resolve the issue. We are confident that they are now in a position to resolve the issues that they have," The group's Chief Financial Officer Peter Gregg said on the sidelines of the group's annual meeting.

 

The delay was announced earlier this month, with Qantas now expecting to receive its first plane from the order in August 2008.

 

Qantas expects to have four of the aircraft by end-2008 and seven by the middle of 2009.

 

Gregg said Qantas did not foresee any capacity restraints and would make an announcement over the next week on contingency plans to cope with the delay.

 

"Assuming there are no further delays, we believe that with the other contingency plans that we are putting in place, which we'll be making an announcement on shortly, we will have adequate capacity given the demand situation that we see," Gregg said.

 

Earlier this month, Airbus parent EADS announced a further one-year delay in delivery of the A380 and said the first customer, Singapore Airlines would receive its first USD$300 million plane in October 2007, 10 months overdue.

 

Dubai's Emirates, the biggest buyer with an order for 43 A380s worth USD$13 billion at list prices, has put its purchases on review.

 

Virgin Atlantic, Malaysia Airlines and Singapore Airlines -- which had planned to make the first commercial A380 flight this year -- joined the charge.

 

Qantas booked AUD$104 million (USD$79 million) in damages in its 2006 accounts, to be paid by Airbus, for the delay in delivering the superjumbos.

 

(Reuters)

 

[Sandeep G 1]

To add salt to the wound........

 

Airbus hikes A380 breakeven target

19 October 2006 10:49 PM

 

© 2006 Reuters Limited

 

PARIS, Oct 19 (Reuters) - Airbus has raised sharply its breakeven point for the A380 superjumbo to take into account delays and cash shortfalls in the mammoth airplane project.

 

The European planemaker told analysts in Hamburg on Thursday that it now needs to sell 420 of the double-decker jets to start breaking even rather than its most recent estimate of 270, parent company EADS said on its website.

 

In all, it is budgeting for 751 deliveries, it said.

 

So far Airbus has sold 159 superjumbo aircraft.

 

Airbus also reported a 6.3 billion euro ($7.92 billion) cash shortfall from the two-year delivery delays disclosed last month, of which 4.8 billion euros are an already reported gross profit shortfall while the rest stems from a net working capital deterioration of 1.5 billion euros.

Edited October 20, 2006 by Sandeep G

[Andrew Ong 1]

Airbus is in BIG BIG BIG Problems..

I guess MAS will Be very happy while SQ,EK,QF and Virgin Atlantic will be Screaming their heads off at Airbus..

 

I agree; Why can't all of the A380 and A380F customers cancel the orders altogether and go for the B773ER, B777F, B748, or the B748F so Boeing can rub their achievements to Airbus.

[Pieter C. 5]

More bad news for the A380; even UPS is evaluating now :

 

October 22, 2006

United Parcel Service has set up a team to evaluate its multi-billion dollar purchase of Airbus A380 freighters, saying all options remain open.

 

The move, confirmed by the company on Friday, is a further sign of doubt among Airbus customers over the A380 superjumbo, which is now two years behind schedule.

 

On October 4 Airbus -- majority owned by European aerospace group EADS -- announced a third delay to A380 production due to continuing problems with the plane's wiring.

 

The announcement caused airlines around the world to review their purchase plans for what will be the world's largest commercial plane, although none has yet canceled orders.

 

UPS, whose freighter fleet makes it the world's eighth-largest airline, has 10 A380s on order, worth more than USD$2.5 billion at list prices, with an option to buy 10 more.

 

UPS said on Friday that it received official notification of the latest delay on October 6, pushing back its first A380 delivery to May 2010 from September 2009.

On October 9, Bob Lekites, vice president of UPS airline and international operations, ordered a team to evaluate the order, according to a company spokesman.

 

"This is an open-ended evaluation that rules out nothing," UPS spokesman Norman Black said. There is no deadline for the team, made up of people from UPS's international operations, to report its conclusions, he added.

 

That leaves open the possibility that UPS may buy or lease Boeing planes as a stopgap measure, or even cancel the order outright and buy Boeing planes instead.

Earlier this month Dubai airline Emirates, the biggest buyer of the A380 with 43 on order worth USD$13 billion, said it was putting its purchases on review.

 

Australia's Qantas Airways said on Thursday it would maintain its A380 order despite a two-year delay in receiving its first planes.

 

US leasing firm International Lease Finance Corporation has said it is keeping its options open.

 

(Reuters)

 

[Sandeep G 1]

Andrew,

 

Airlines and airports have already invested millions worldwide to accomodate the A380.. so for many, it's compensation for the delay that will perhaps hold them on to the deal - very frustratingly of course.

 

With carriers like UPS and Emirates sending in audit teams - it adds to Airbus' problems and doesn't shine much positive light on the whole programme.. but in the end, I think they will work it out because they HAVE to work it out...

 

The A380 programme in my opinion is the epitomy of the aviation industry the world over - one big roller coaster.. and will be a shining example for the future when the mammoth (if ever) is redisigned again, be it by Boeing, Airbus or maybe by some new Asian aviation conglomerate we can only hope

[Sandeep G 1]

Meanwhile across the Atlantic Pond:

 

Boeing Reports Third-Quarter Results and Raises 2007 Guidance

Net earnings of $694 million, or $0.89 per share, including previously disclosed

charge of $0.22 per share to exit Connexion business

Adjusted EPS* in Q3 increased to $1.11 per share; up 50 percent year to date

Revenue grew 19 percent to $14.7 billion

Record backlog rose to $229 billion

2006 EPS guidance reflects Connexion charge offset by performance

improvements; 2007 EPS guidance increased $0.20 per share

 

Source: Boeing

[Pieter C. 5]

October 26, 2006

Richard Branson's Virgin Atlantic said on Thursday it was pushing back delivery of its first Airbus A380 superjumbo by four years, giving the planemaker time to sort out problems encountered in wiring the mammoth planes.

 

Virgin said it still intended to take delivery of all six of the USD$300 million planes it has on order, but now would not see its first one until 2013.

 

"Virgin Atlantic has reached agreement in principle with Airbus to defer deliveries of its Airbus A380 aircraft until 2013," the airline said.

 

"By then, we believe the A380 will have proven its innovative design over several years in commercial service. The deferral will also enable Airbus to prioritize production and deliveries for its launch customers, such as Singapore Airlines," it said.

 

Virgin Atlantic is 49 percent owned by Singapore Airlines , which is set to be the first airline to fly the A380.

 

An Airbus spokesman confirmed that the agreement would help the planemaker focus on deliveries to its core, launch customers.

 

Airbus is running two years behind schedule in producing the A380 because of problems encountered in wiring the 555-seat double-deckers.

 

Some airlines, forced to lease planes to fill planned routes until the A380 is ready, have asked Airbus for compensation.

 

"We have extended the leases of several of our Boeing 747-400 aircraft in order to meet our fleet needs and future growth plans," Virgin said.

 

A spokeswoman declined to comment on whether Virgin had sought financial compensation for delays to A380 deliveries.

 

Thursday's deferral is the second from Virgin, which said in 2004 it would push back an expected 2006 delivery start until 2007. The plane's wiring woes had since pushed that date back to the end of 2009.

 

(Reuters)

 

[Gavin Andrew David 6]

Thanks P. C.

[Pieter C. 5]

You're welcome; did you know VS was owned 49% by SQ - new to me